|RANGE RESOURCES CORP filed this Form 8-K on 07/31/2018|
Production per day Guidance
Production for the third quarter of 2018 is expected to be approximately 2,220 Mmcfe per day. This excludes all Midcontinent volumes following the sale of that asset in early July.
Production expectations for the full year 2018 remain approximately 11% year-over-year growth.
3Q 2018 Expense Guidance
3Q 2018 Natural Gas Price Differentials (including basis hedging):NYMEX minus $0.20
Based on current market indications, Range expects to average the following pre-hedge differentials for calendar 2018 production.
Range hedges portions of its expected future production volumes to increase the predictability of cash flow and to help maintain a more flexible financial position. Range currently has over 80% of its expected second half 2018 natural gas production hedged at a weighted average floor price of $2.97 per Mmbtu. Similarly, Range has hedged over 70% of its second half 2018 projected crude oil production at a floor price of $53.20 and over 50% of its composite NGL production. Please see Range’s detailed hedging schedule posted at the end of the financial tables below and on its website at www.rangeresources.com.
Range has also hedged Marcellus and other basis differentials to limit volatility between NYMEX and regional prices. The fair value of the basis hedges was a loss of $1.9 million as of June 30, 2018. The Company also has propane basis swap contracts which lock in the differential between Mont Belvieu and international propane indices. The fair value of these contracts was a loss of $2.1 million on June 30, 2018.